26th Jul 2006 10:15
Aggreko PLC26 July 2006 Aggreko signs power-generation contracts worth an estimated $70million First major contract for new gas-powered generators Aggreko plc, the world leader in the provision of temporary power, temperaturecontrol and oil-free compressed air solutions, has been awarded contracts forthe provision of temporary power generation in both Uganda and Tanzania.Together, these two contracts call for 90 MW of generating capacity and arelikely to be worth in excess of $70 million over the next two years. The contract in Tanzania has been awarded by The Tanzanian Electric SupplyCompany (TANESCO), and is for the supply for two years of 40 MW of gas-poweredgeneration. The plant will be installed in Dar es Salaam and will be suppliedwith natural gas from the offshore Songo Songo gas field. The Ugandan contract, which is also for two years, has been awarded by theGovernment of Uganda and a Power Purchase Agreement has been entered into withUganda Electrical Transmission Company Ltd (UETCL). This contract, which is for50 MW of generation capacity, is in addition to the 50 MW installed by Aggrekoin 2005, and means that the Aggreko will be supplying an estimated 40% of thecountry's total grid capacity. In addition to the power generation contract,Aggreko will be providing fuel on a pass-through basis for the contract, whichis likely to be worth approximately $120m at current prices. Both these contracts have arisen as a consequence of the severe lack of rainfallin East Africa, where many countries are dependent on hydro-power for theirelectricity supply. Low water-levels in the region's major dams have lead tosignificantly reduced power output, and Aggreko is now supplementing gridsupplies in Kenya, Rwanda, Tanzania, and Uganda. Rupert Soames, Chief Executive of Aggreko, said: "We are extremely pleased to have won these contracts. The Tanzanian contract isa vindication of the step-out investment we made last year into gas-poweredgeneration. Gas represents an important new market opportunity for Aggreko, andis a particularly good solution in countries, like Tanzania, which have abundantgas reserves." "The additional Ugandan contract is testimony to the success of the existingAggreko power plant in Kampala, and we are delighted to be able to provideadditional support to meet the power generation requirements of the country." As is usual in such projects, implementation will start, and the contractsbecome effective, once associated bonds and guarantees are in place. Ends Enquiries to: Rupert Soames / Angus CockburnAggreko plcTel. 0141 225 5900 Wendy TimmonsMaitlandTel: 020 7395 0427 NOTES TO EDITORS: About Aggreko Aggreko plc is the global leader in the rental of power, temperature control andoil-free compressed air systems. We help customers in many different industriesto improve and safeguard their operations by solving problems, creatingopportunities and reducing risk. Aggreko provides 24/7 availability and servicesupport with more than 2,200 employees operating from over 100 locations in 28countries. In 2005, we served customers in 80 countries, and had revenues of£417m. For more information, please access the company website at http://www.aggreko.com/ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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